CAQ releases statement on PCAOB's NOCLAR Roundtable
Mar 06, 2024
On March 6, 2024, the Center for Audit Quality (CAQ) released a statement regarding the recent roundtable conducted by the PCAOB on its NOCLAR proposal, indicating that the event did not unfold as anticipated.
As per its statement, the CAQ believes that the recent roundtable conducted by the Public Company Accounting Oversight Board (PCAOB) regarding its proposal on company noncompliance with laws and regulations (NOCLAR) fell short of the principles of transparency and accountability essential for effective public policy development.
“Today’s NOCLAR roundtable was a missed opportunity for the PCAOB to further understand the views highlighted in numerous comment letters from engaged stakeholders,” said Julie Bell Lindsay, Chief Executive Officer, CAQ. “Not only did the roundtable surface disagreement as to the actual scope or intention of the proposal, but we are concerned that the lack of diverse stakeholder representation – particularly from investors and audit committees, two important audiences – resulted in dialogue that did not meaningfully address stakeholder concerns. Given the discussion at the roundtable, we believe that the appropriate response is to re-propose the standard, with an economic analysis, to begin to address these concerns.”
Access the statement on the CAQ website and the roundtable on the PCAOB’s website.